More Articles  Printer Friendly Version

 

V-Shaped But Full Recovery Is Long Off

(Friday, June 12, 2020, 6 p.m. EST) After the disastrous -33.5% economic contraction ends in 16 days, the nation's leading economists expect the U.S. to grow 14.2% in the third quarter, according to the consensus forecast of 60 economists published in The Wall Street Journal today.

The upbeat results from the survey of more than 50 leading public- and private-sector economists contrast with a 5.9% plunge in the Standard & Poor's 500 index on Thursday and a resurgence of Coronavirus across southern and western U.S.

The survey was conducted in the past 10 days by The Journal and is evidence supporting the case that a strong recovery is likely but will be tempered by a slow return to the all-time peak in real gross domestic product of the fourth-quarter of 2019.

The S&P 500 rose +1.3% on Friday but was down -4.9% from last week. It's up 30.5% from the March 23rd bear market low, closing at 3,041.31.

The S&P 500 closed last Friday with a +4.8% weekly gain, The index had gained 3% a week earlier and 3.2% the week before.


The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial situation, or particular needs. Product suitability must be independently determined for each individual investor.

This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.


Email this article to a friend


Index
Two Good Economic Surprises
October Surprise May Be The Economy
Economic Signs Are Fine Amid The Distractions
Poverty Rate Dropped Again In 2019; A Sign Of Progress 
Stocks Dropped Last Week But Data Confirmed Economic Recovery
Amid A Mixed Week For Stocks, A Strong Recommendation
Is A Stock Bubble Bursting?
S&P 500 Breaks Record For A Second Week
S&P 500 Breaks New Record; Small Business Picture Is Different
As If Coronavirus Never Hit, Retail Recovers
Confirming Recovery Is Under Way
Despite Grim Headlines, Stocks Rose Sharply -- Why?
The Paradigm Shift In Valuing Stocks
Retail Sales And Housing Starts In June Reveal Recovery's Shape
Keeping Perspective In An Unreal Environment
Economic Fundamentals Recovering As Stocks Surged For the Week

This article was written by a professional financial journalist for Delta Financial Advisors, Inc and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.